Former Euro Working Group (EWG) president Thomas Wieser on Friday said Greece's immediate future would be easier with a "safety net" in place, a direct reference to a precautionary credit line after the end of the current - and last - bailout next August.
Speaking at the third Delphi economic forum, held within a short walk of the eponymous archaeological site in south-central Greece, he nevertheless acknowledged that the current leftist-rightist coalition government is absolutely ill-disposed towards such a prospect, as it considers that this would amount to a new adjustment program -- i.e. a fourth bailout program since 2010.
Despite the stern opposition by the current poll-trailing Tsipras government to a precautionary credit line, Wieser added that compromise, which he called a "safety cushion", could be set in place. Such a "cushion", as he noted, would obviously entail obligations for an eligible country (Greece, in this case), which would seek its opening, but not along the lines of another program.
European creditors, and Bank of Greece (BoG) Gov. Yannis Stournaras, have repeatedly encouraged the Greek government to seek a precautionary credit line for the period after the bailout, when Athens is expected to return to sovereign markets for its financing needs.
Moreover, the Austrian economist expressed a view that Greek banks will not need another recapitalization, something that, in any case, will become clear in the next few months.
He also said additional debt relief measures for the country will gradually take place in the coming years, measures he said will be linked to the fulfillment of specific goals on the part of Greece.
The former Euro Working Group (EWG) head struck again earlier this month in relation to the Greek crisis era, especially during the "annus horribilis " of 2015, saying he estimates total damages for the country from the shambolic negotiations between Athens and creditors, during the first half of that year, at double than previous believed, namely, 200 billion euros.
Wieser, who stepped down as EWG president last month, was quoted by the Dutch newspaper De Volkskrant as saying that an estimate by ESM Managing Director Klaus Regling of 100 billion euros in damages - related to the six-month tenure of controversial ex-FinMin Yanis Varoufakis - was actually double that figure.
